Economic sentiment deteriorates

Economic sentiment in Cyprus deteriorated in September among businesses and consumers, according to the Economics Research Centre of the University of Cyprus (CypERC).

In September, economic sentiment deteriorated, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 1.6 points to 106.5 from August.

A year ago, the uncertainty index stood at a lower 100.9 points.

The decrease “was driven by a further decline in consumer confidence and a deterioration in business confidence in all sectors, except construction.”

The Services Confidence Indicator decreased slightly as firms assessed their recent business situation less favourably.

The Retail Trade Confidence Indicator declined due to the deterioration in firms’ views on recent sales and stock volumes.

At the same time, the Construction Confidence Indicator increased marginally as employment expectations improved.

According to CypERC, the Industry Confidence Indicator deteriorated for the second month in a row, mainly because of downward revisions in production expectations.

The Consumer Confidence Indicator decreased, recording its lowest value from January to September.

In September, consumers assessed their recent and future financial situations more negatively.

Moreover, consumer views on the recent economic conditions in Cyprus deteriorated markedly.

The CypERC said the increase in economic doubt was driven by higher uncertainty levels among consumers and firms, primarily in services and construction.